easyHotel has acquired a 125-year leasehold of part of Norfolk House in Milton Keynes to develop a 124-bedroom hotel, expected to open mid-2019 at a total cost of approximately £8.7 million.
The development has already received planning permission and the acquisition will be completed subject to planning being finalised at the end of the judicial review period.
Norfolk House is centrally located in the town centre, just 200m from the main shopping centre and just 0.3 miles from The Hub Milton Keynes, a major leisure scheme.
The Group intends to convert its part of the building into a 124-bedroom hotel, which is expected to open by mid-2019 at a total cost of approximately £8.7 million.
The Group said it has a committed pipeline of seven owned hotels comprising 941 rooms. Construction of hotels in Barcelona, Leeds, Sheffield and Ipswich has commenced and the 517 rooms should all open in the summer of 2018.
The planned hotel openings during the current financial year ending 30 September 2018 and beyond are expected to make a significant contribution to system sales, revenue and adjusted EBITDA going forward.
Guy Parsons, CEO of easyHotel plc said: 'We continue to see a good number of attractive potential development opportunities, both in the UK and Europe to further accelerate the Group's growth.'
'These are both larger and more numerous than we had originally anticipated. Consequently, the Board is considering its finance options, which may include new equity and debt, to fund more hotels.'
At 8:00am: (LON:EZH) Easyhotel Plc share price was +1p at 109p

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